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Myths And Realities Of Cloud-Based Application Management Services

2012-01-06by Brady Reiter

Cloud-based application management services allow the enterprise to rely on a usage-based billing model that eliminates upfront capital expenditure, reduces recurring operational costs, accelerates application deployment, delivers superior application support, and allows IT to focus on supporting core business objectives.

Despite cloud-based application management services being a revolutionary IT concept, there is still misunderstanding about what cloud-based application management services are and what the true benefits are for the enterprise. This blog debunks the five most commons myths that have arisen around this subject, and illustrates how cloud-based application management services can create more efficient business environments.

Myth #1—Application management is only about cost saving

The biggest myth about application management is that it is primarily a cost saving exercise. Though it is true that cost savings are a major benefit of such services, it is a misconception that companies choose application management solely to find ways to reduce their IT spending. In addition to providing a usage-based billing model, on-demand scalability, built-in business continuity, and faster deployment for your business applications, application management services empower your business with a vast pool of application experts, resources, and tools to leverage the full potential of your applications

Myth #2—Applications and data are not secure anymore

A pervasive misconception is that outsourcing your application management needs to a third party leaves your applications and data compromised. Quality application management providers not only guarantee full responsibility for security, but also ensure application performance, scalability, reliability, security, continuity, and compliance. This means your applications are monitored and managed against clearly defined SLAs. In fact, application management services can dramatically improve your organization’s ability to design, develop, test, and maintain the security of applications in all phases of the development lifecycle. In this way, cloud-based applications can be made more secure at the start of the development process, and data is properly protected from unauthorized access.

Myth #3—Cloud-based application management means compliance tradeoffs

Companies often think that cloud-based application management necessitates compliance tradeoffs, when in fact it usually positions the enterprise to more efficiently and effectively comply with regulatory requirements. At a minimum, IT should select applications hosted in SSAE 16 (the successor standard to SAS 70) compliant data centers employing a complete array of physical and data security measures. IT should also ensure that the application management partner is committed to third-party validation, standards, and certification of the policies and procedures needed to maintain applications and underlying IT infrastructure in compliance with regulatory requirements. Many providers offer industry-specific compliance programs, and enterprises benefit from this approach by working with application management experts well-versed in compliance standards, such as Sarbanes-Oxley, PCI, and HIPAA.

Myth #4—Only small or ecommerce businesses need application management

Application management services are not just for the small or transaction oriented businesses but in fact can benefit enterprises regardless of size or industry. Today most organizations, irrespective of their size and nature of business, rely on business application systems to manage processes, sustain supply chains, drive operations, and maintain customer relations. And with these applications more deeply ingrained within enterprises than ever before, it is even more important to ensure you achieve the maximum value from your applications.

Myth #5—Application management takes away control over applications

In reality, the exact opposite is true because the enterprise gains improved control, flexibility, and management. By using application management services, enterprises can still retain access to hosted applications to meet business needs, and you can also leverage industry best practices to ensure the access granted enables you to meet regulatory compliance demands. You also gain deep visibility into applications and supporting physical and virtual server networks, resulting in greater operational control, better reporting, and a higher rate of on-time, on-budget application delivery. Plus, SLAs guarantee application control, customization care, and performance to ensure your requirements are consistently being met.

These myths have created some confusion about the overall benefits and risks of cloud-based application management services. In reality, these services offer a great deal of value and can help enterprises create and support more efficient, responsive, and cost-effective business environments.

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Author

Brady Reiter

NaviSite

Brady Reiter is general manager, enterprise architecture and application strategy for NaviSite (www.navisite.com), a Time Warner Cable Company. He is an expert in the design of complex enterprise solutions focusing on ERP, BI, and CRM applications, and full IT outsourcing projects, and is an expert in applications including PeopleSoft, Oracle, Hyperion, OBIEE, Seibel, Lawson, Kronos, and Microsoft Dynamics.

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